End of unemployment programs could tighten finances

ROCKFORD — With several extended unemployment benefit programs winding down this year, the financial situation for thousands of unemployed Illinoisans could be getting even tighter.

By Sean F. Driscoll

Rockford Register Star

By Sean F. Driscoll

Posted Jun. 25, 2012 at 12:01 AM
Updated Jun 25, 2012 at 1:18 PM

By Sean F. Driscoll

Posted Jun. 25, 2012 at 12:01 AM
Updated Jun 25, 2012 at 1:18 PM

ROCKFORD — With several extended unemployment benefit programs winding down this year, the financial situation for thousands of unemployed Illinoisans could be getting even tighter.

More than six months’ of benefits are ending thanks to the state’s improving unemployment rate. A 20-week extended benefit program shut off the week ending May 12, and a six-week stint of the Emergency Unemployment Compensation program died Saturday. That’s a potential loss of $14,274 in pretax earnings, based on the maximum payment for a claimant with children allowed by Illinois law.

People already receiving benefits under one of the expiring tiers will be able to exhaust their benefits, but they won’t be able to move on to the next tier. Anyone who hasn’t started on either the extended benefit program or the six-week stint of EUC won’t be able to do so.

Heidi Berardi, director of education and community outreach at Family Credit Counseling Service, a nonprofit financial counseling center in Rockford, said those facing a loss of benefits should start planning now for their new financial situation.

“I’d suggest they take a real, honest assessment of their current expenses and cut all the extras like cable, at least in the short term, and expensive cell phone packages,” she said. “This is the time that people may be able to qualify for resources like food stamps and utility assistance, too.”

Berardi said the No. 1 priority for spending should be housing, whether it’s a mortgage payment or rent. Assistance is available on mortgage payments through the Illinois Housing Development Authority, and township governments offer rent assistance to those who qualify.

“I’ve seen so many people in the last five years who consider themselves at rock bottom but, because they did a good assessment and were knowledgeable about what’s out there, found it easier to get back on track,” Berardi said. “Being willing to ask for assistance is the hardest part.”

For those who recently lost their jobs, however, their time on unemployment may be even shorter. What remains of the federally funded unemployment benefit tiers are only paid for through Dec. 29, meaning newcomers to the benefit system likely won’t be able to get any benefits beyond the 25 weeks paid for by Illinois law.

The money has been a lifesaver to the Illinois economy: Since the extension tiers were created in 2008, Illinoisans have received more than $11 billion in benefits. In May, $197 million was paid, according to U.S. Labor Department data.

About 12.7 million people were out of work in May, with 43 percent of them out of work for six months or longer, according to the U.S. Bureau of Labor Statistics. The average stint of unemployment was about 10 months.

Mortgage assistance: The Illinois Housing Development Authority and the U.S. Department of Treasury offer temporary mortgage payment assistance. Go to illinoishardesthit.orgor call 855-533-7411 for details.

Food stamps: Help low-income people and families buy food for good health. Eligibility is based on income and expenses, the number of people who live and eat together, and the amount of available liquid assets, such as money in checking and savings accounts. Go to dhs.state.il.us or call 800-843-6154 for details.

Emergency food: Available at food pantries across the state. Go to feedingillinois.org or call 773-843-5425 for details.

Cash assistance: Available through the Temporary Assistance for Needy Families program to pregnant women and families with children who need help paying for food, shelter, utilities, clothing and other expenses for a limited time. Go to dhs.state.il.us or call 800-843-6154 for details.

Job search help: The Workforce Connection is an umbrella organization of training groups. Go to theworkforceconnection.orgor call 815-395-6608 for details.